WASHINGTON (Reuters) - President Bush renewed a ban on Internet taxes on Wednesday, ensuring that the country's 130 million Internet users will not face new taxes for at least another two years.

Bush said the legislation which he signed into law would "ensure that the growth of the Internet is not slowed by additional taxation and that holiday shoppers will not be burdened by new taxes on their online purchases."

Congress passed the original ban in 1998 to prevent states and local governments from imposing new taxes that might discourage growth of the new medium.

While those governments said there were few if any jurisdictions with immediate plans for new Internet taxes after the moratorium lapsed on Oct. 21, the extension of the ban was sure to cheer many in the Internet industry amid a nationwide economic slowdown.

Bush said online spending was expected to account for 15 percent of total holiday purchases this year.